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Issues involved: Whether the technical know-how fees are liable to be included in the assessable value of imported goods.
Summary: The appeal concerned the inclusion of technical know-how fees of U.K. Pound 50,000 in the assessable value of goods imported by the appellant. The appellant had a collaboration agreement with a UK company for manufacturing specific equipment, with the agreement stipulating payment of technical know-how fees. The dispute arose when the authorities included these fees in the assessable value of the imported goods. The Ministry of Industry permitted the collaboration for manufacturing specific equipment, with the appellant paying technical know-how fees to the UK company. The agreement allowed the appellant to manufacture licensed equipment using the technical know-how provided by the UK company. The appellant imported goods under several bills of entry, and the authorities included the technical know-how fees in the assessable value, leading to the appeal. The Commissioner (Appeals) upheld the inclusion of technical know-how fees in the assessable value, stating that it was for the import of specific components for manufacturing specific parts. However, the appellant argued that the fees were for domestic manufacture of licensed equipment and not related to the imported goods. The appellant cited clauses from the agreement to support their argument. The Tribunal found merit in the appellant's contention, noting that the technical know-how related to the indigenous manufacture of licensed equipment in India and not to the imported goods. Citing precedent cases, the Tribunal held that the know-how fees were not to be included in the assessable value of the imported goods. Therefore, the Tribunal set aside the order and allowed the appeal. In conclusion, the Tribunal ruled in favor of the appellant, stating that the technical know-how fees were not to be included in the assessable value of the imported goods as they were related to the domestic manufacture of licensed equipment and not the imported goods.
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